Facing Foreclosure? What are your options?

You now have more options than you did prior to March 4^th of this year.  If your loan is a Fannie Mae loan, you may be able to get a loan modification to a lower rate or total loan amount.  You may also be able to refinance if your amount owed is not over 105% of your home’s value.

How do you know if you qualify? The easiest way is to call your lender to find out if you have a Fannie Mae loan.  Ask if they can help you with a loan modification or refinance. They may or not be willing to help.

If your lender does not want to help, contact a Real Estate Professional as soon as you start having trouble making payments.  Do not delay!  A lender can start the foreclosure process as soon as one payment is missed.  The ability of a Real Estate Professional to help you out is lessened the closer you are to being foreclosed on.

What can the Real Estate Professional do for you?  The first step is to try to negotiate a loan modification on your behalf.  If this is not possible, the Realtor® can negotiate a short sale on your behalf.

Why should you consider a short sale?  The short sale is a way for you to salvage your credit and not have to pay the bank the difference of what they home sells for and the amount currently owed.  You may also get a break on the difference owed for tax purposes (capital gains). Contact a tax professional to determine if you will have the capital gain forgiven.

While it is never pleasant to lose your home, it is much better for you to be in control of the process through a short sale than to be foreclosed on.

As always, if you have any questions do not hesitate to contact me and I will be happy to help or put you in touch with someone that can help you.